Canada’s principal stock gauges exhibited limited movement on Friday as investors remained cautious in the face of persistent U.S.-Iran tensions that have propped up oil prices above $100 a barrel.
By 12:12 ET (17:12 GMT), the S&P/TSX 60 index and the Toronto Stock Exchange’s S&P/TSX composite index were essentially unchanged, up 0.03% and 0.02% respectively. The muted trade followed a modest decline on Thursday, when the TSX composite closed down 0.1% at 33,912.93.
Inflationary signals from Canada added to investor vigilance. Canadian producer prices rose 2.4% in March compared with February, a jump largely driven by higher costs for energy, petroleum products and chemicals attributed to the Iran conflict. Higher wholesale inflation could prompt central banks to reconsider their outlook for interest rates, a dynamic that would generally weigh on equity valuations.
Domestic economic data may further inform monetary policy expectations. Retail sales figures due on Friday were expected to provide additional context ahead of the Bank of Canada’s rate decision next week.
U.S. markets mixed but lifted by earnings
In the United States, major averages were mostly firmer, supported in part by stronger-than-expected corporate results even as geopolitical uncertainty lingers. The Dow Jones Industrial Average was the exception, down 67 points, or roughly 0.1%. The S&P 500 climbed by about 52 points, or 0.7%, while the Nasdaq Composite rallied by approximately 353 points, or 1.4%.
Wall Street had finished lower on Thursday, a pullback that market participants linked to diminished hopes that Washington and Tehran would soon reach an agreement to halt hostilities and reopen the Strait of Hormuz. That waterway, critical to global oil shipments, has been effectively closed to tanker traffic for weeks, amplifying volatility in energy markets.
Despite the geopolitical backdrop, investor attention remained trained on corporate earnings. Semiconductor maker Texas Instruments stood out in the prior session, with shares surging more than 19% after reporting results and guidance that exceeded investor expectations. The strong performance in Texas Instruments shares lifted other semiconductor names as well, reflecting the sector’s sensitivity to positive earnings news.
Demand trends highlighted during the Texas Instruments report underlined continued heavy investment in tech infrastructure. A notable increase in orders for the company’s analog chips from data center customers was cited as evidence of an aggressive rise in tech spending tied to artificial intelligence projects. That dynamic has helped markets partially look beyond the economic drag associated with the Middle East conflict.
Further support in the technology complex came from Intel. The chipmaker’s shares jumped in premarket trading after projecting a revenue increase driven by AI-related data center demand. Intel, which some market observers had seen as a relative laggard in the AI spending cycle, has seen growing interest in its CPU products as firms pursue higher computing capacity for advanced AI applications.
The article’s source text also notes corporate alliances and stakes involving Intel, including a reported 10% stake from the Trump administration and a reported move to partner with Tesla and SpaceX on a project that includes a chip-fabrication facility in Texas. These developments were referenced in the reporting as context for investor sentiment around Intel.
Outside of semiconductors, Germany’s SAP posted quarterly profit that exceeded expectations. Analysts at Vital Knowledge described recent earnings results as largely bullish, saying they continued a positive trend seen since the start of the reporting season.
Oil volatility remains the market’s focal point
Geopolitical developments in the Middle East continued to drive oil market dynamics. According to the reporting, President Donald Trump announced a three-week extension of a ceasefire between Israel and Lebanon following diplomatic meetings. However, representatives from Hezbollah were not present at those talks, and firing between Israel and Hezbollah was reported shortly before the announcement, underscoring the fragility of the situation.
Earlier in the week, an indefinite ceasefire between the U.S. and Iran was reported, but the U.S. maintained a blockade of Iranian ports. Tehran’s response to the blockade reportedly included attacks on and seizures of ships in the Strait of Hormuz. The U.S. has also seized Iranian-flagged vessels, and President Trump was quoted as saying he ordered the Navy to "shoot and kill" Iranian boats attempting to lay mines in the strait.
With limited signs that the Strait of Hormuz will be reopened to tanker traffic in the near term, crude oil prices have climbed, stoking concerns about a renewed inflationary impulse and potential global growth headwinds. Brent crude, the international benchmark, erased earlier gains on Friday to trade around $104.66 a barrel at one point in the session.
Safe-haven flows and currency moves
Gold prices experienced a bounce during the trading session but were set for a weekly decline, according to the reporting. The recent rise in oil prices heightened worries about energy-driven inflation, which in turn has lifted expectations for interest rates to remain higher for longer. Non-yielding assets such as gold often struggle in environments of elevated interest rates.
At the same time, the U.S. dollar enjoyed a modest bid this week, a factor that can reduce demand for dollar-priced gold from overseas buyers. A broader dollar index tracking the currency against a basket of peers was last reported down by 0.2%.
Investors face a compressed set of near-term influences: geopolitics that keep energy prices elevated, incoming economic data that could alter central bank rate paths, and a corporate earnings season that is revealing divergent performance across sectors. How these forces interact in the days ahead will be central to positioning across Canadian and global markets.